Thailand's Currency Crisis: Effects: Difference between revisions
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==Effects Beyond Asia== | ==Effects Beyond Asia== | ||
* Any country selling to Thailand pre-crisis now gets severe drop in demand. | * Any country selling to Thailand pre-crisis now gets severe drop in demand. | ||
* | * Because of this crisis, investors into markets globally pulled out, affecting the global economy. Unfairly affecting developing countries not previously part of the Asia crisis. (i.e. countries in Latin America) | ||
{{Currency Crisis Nav Bar}} | {{Currency Crisis Nav Bar}} | ||
Revision as of 02:03, 29 November 2006
Effects on Thailand
- For Thai citizens, foreign goods were suddenly more expensive.
- Biggest impacts in the financial sectors (i.e. banks).
- Foreign loans loaned out to Thai citizens aren't paying the interest/face value of the original loan.
- Having trouble getting loans because of lack of reliability.
- IMF arranged emergency rescue package of $18 billion for Thailand
Effects on Region (SE Asia/Asia)
- Thailand > Indonesia and Korea > Russia > Latin America
- this Asian crisis pushed one-third of the globe into recession during 1998
- total world IMF rescue funds because of this: $184 billion
Effects Beyond Asia
- Any country selling to Thailand pre-crisis now gets severe drop in demand.
- Because of this crisis, investors into markets globally pulled out, affecting the global economy. Unfairly affecting developing countries not previously part of the Asia crisis. (i.e. countries in Latin America)
